Consumer-directed health plans gain traction

There are more enrollees in consumer-directed health plans this year than last, and those individuals are more likely to have higher income and enjoy better health than their traditional plan counterparts, according to a study.
NOV 18, 2008
There are more enrollees in consumer-directed health plans this year than last, and those individuals are more likely to have higher income and enjoy better health than their traditional plan counterparts, according to a study from the Employee Benefit Research Institute. Some 4.2 million adults 21 to 64 are in a consumer-directed health plan, equivalent to 3% of the population, according to Washington-based EBRI’s 2008 Consumer Engagement in Health Care Survey. That is up from 2% of the population in 2007. Meanwhile, 11%, or 13.4 million people, are in a high-deductible plan this year, holding steady from 2007. Consumer-directed health plans are intended to put more responsibility on the individual consumer. In these arrangements, coverage kicks in after the client hits a high deductible. The plan is paired with a health savings account, which can be used to cover routine expenses. Enrollees in these plans are also more likely to have a higher household income than their traditional plan counterparts. Forty percent of those in consumer-directed plans had income of at least $100,000, while just 23% of those in traditional plans had comparable income. Those who are in consumer-directed health plans are also more likely to be in excellent or very good health. Forty-five percent of those in consumer-directed plans reported having a health problem such as heart disease, hypertension or asthma, compared with 54% in traditional plans. They were also less likely to smoke. Thirteen percent of those in consumer-directed plans smoked, while 20% of those in traditional coverage plans did so.

Latest News

The Stacking Strategy: How Intelligent Allocation Can Create Better Tax Outcomes
The Stacking Strategy: How Intelligent Allocation Can Create Better Tax Outcomes

What if one investment decision could create tax-saving opportunities across your entire portfolio? Chris Vizzi shares how the Stacking Strategy helps investors align tax planning, portfolio construction, and wealth preservation to maximize long-term outcomes while keeping more of what they earn.

AI could drag down RIA valuations, warns Alaris CEO Allen Darby
AI could drag down RIA valuations, warns Alaris CEO Allen Darby

Buyers spending on AI may treat less efficient sellers as overstaffed and price the cost of rightsizing into lower offers

Former Western Asset Management star bond manager fined $3 million
Former Western Asset Management star bond manager fined $3 million

Kenneth Leech pleaded guilty in June to one obstruction charge, and could face six to 12 months ⁠in ​prison.

Morningstar rolls out agentic AI platform built on its research
Morningstar rolls out agentic AI platform built on its research

Launch of Direct AI follows a model portfolio tie-up with Envestnet as advisors juggle AI adoption and private-market due diligence.

Advisor moves: Osaic draws Equitable advisor overseeing $245 million in assets
Advisor moves: Osaic draws Equitable advisor overseeing $245 million in assets

Meanwhile, Cetera's streak of Commonwealth recruitment continues in Washington, and an LPL advisor hops over to Raymond James in Maine.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor